19-20-412. Election to purchase additional service. (1) (a) Except as provided in subsection (3), a member with 5 years or more of creditable service may make a written election with the retirement board to purchase, for the purpose of calculating the member's retirement allowance, 1 year of additional service for:
     (i) each 5 years of service on which contributions have been made as required under the provisions of 19-20-602; and
     (ii) each 5 years of membership service as defined in Title 19, chapter 3, for which contributions have been made as required under the provisions of 19-20-409.
     (b) A maximum of 5 years of additional service may be purchased under this section. A part-time member may purchase additional service on a prorated basis.
     (2) (a) To purchase additional service under this section, a member shall contribute, in a lump-sum payment or in installments as agreed upon by the member and the retirement board, an amount equal to:
     (i) the combined employer and employee rate on July 1, 1989, or the combined rate in effect at the time the member is eligible to purchase the service, whichever date is later, multiplied by the member's earned compensation as provided in subsection (2)(b); and
     (ii) interest at a rate of 8% compounded annually from July 1, 1989, or from the date at which the member is eligible to purchase the service, whichever date is later.
     (b) The earned compensation used in calculating the cost of purchasing additional service under this section is:
     (i) for the first year of service purchased, the member's earned compensation for the 1988-89 school year or for the member's fifth year of service, whichever year is later;
     (ii) for the second year of service purchased, the member's earned compensation for the 1988-89 school year or for the member's 10th year of service, whichever year is later;
     (iii) for the third year of service purchased, the member's earned compensation for the 1988-89 school year or for the member's 15th year of service, whichever year is later;
     (iv) for the fourth year of service purchased, the member's earned compensation for the 1988-89 school year or for the member's 20th year of service, whichever year is later; and
     (v) for the fifth year of service purchased, the member's earned compensation for the 1988-89 school year or for the member's 25th year of service, whichever year is later.
     (3) A member who became a member prior to July 1, 1989, and who is eligible to purchase creditable service under 19-3-504, 19-3-510, 19-3-512, 19-3-513, 19-20-402, 19-20-403, 19-20-408, 19-20-410, or 19-20-411 may not purchase additional service under this section unless the member elects in writing to:
     (a) waive eligibility to purchase creditable service under sections referred to in subsection (3); and
     (b) apply the accumulated contributions made under sections referred to in subsection (3) to the cost of additional service purchased under this section.
     (4) Additional service purchased under this section may not be used to qualify a member for service retirement.

     History: En. Sec. 1, Ch. 113, L. 1989; amd. Sec. 1, Ch. 8, L. 1991; Sec. 19-4-412, MCA 1991; redes. 19-20-412 by Code Commissioner, 1993; amd. Sec. 6, Ch. 136, L. 1995.